Due to the sharp increase in the price of wheat, bread and other wheat products are expected to go up in price at the end of July. Wheat has risen by about 25% in the last year and the Kansas market shows a recent increase of 32%, from 620 cents to 830 cents a bushel. (37 bushels make up a ton).

It appears severe heat waves in the United States have resulted in damage to corn crops, which increases the demand for wheat, a corn substitute, hence the sharp increase in price. Soy prices are also up, registering a 19% increase in the last month in the Chicago market, moving from $13.21 a bushel to $15.73. The soy increase has a direct impact on the price of oil, a staple in the food industry.

According to Israeli expert Baruch Turgeman, a partner in the nation’s largest wheat mill, the heat conditions in Colorado, Oklahoma and Kansas in the USA have devastated the nation’s corn crop. The same occurred regarding soy crops and the result was a sharp increase in the demand for wheat.

All of this accompanied by a decline of the NIS against the US dollar has resulted in a 30% increase in the price of wheat in Israel. Flour officials hope that the price will stabilize but for now, the increase being passed to the Israeli consumer is 15%.

Moshe Kramer of Tel Aviv’s Yisraeliyot Mill has announced a price increase of 15% – 20%. He explains the price fluctuates in line with the international market price for flour, which he expects will reach 2,300 NIS a ton.

Yaron Angel, an owner of Angel’s Bakery, Israel’s largest, supplying about 33% of the nation’s bread, the price of a subsidized load of bread will be changed at month’s end to reflect today’s marketplace realities. This follows a recent increase of 15% in the price of sugar.

Jill Gamune of the Sugat Company explains that last month, sugar prices were increased to reflect the world market.

Dudu Shteinmitz, who is responsible for setting prices in the Ministry of Trade, says last year at this time, the prices dropped but this year the opposite is true. He explains that towards month’s end the situation will be evaluated and the appropriate action will be taken. He explains that all the ingredients will be weighed in and if the price increase exceeds 3% there must be an increase in the price of the standard subsidized loaf of bread.

(YWN – Israel Desk, Jerusalem)